194Q section.

hi, if the company turnover is less than 10 crore but the purchase from one party exceeds 50 lakh, is this case 194Q applicable or not.
Replies (7)
Quick Summary
This discussion clarifies the applicability of Section 194Q regarding Tax Deducted at Source (TDS) on purchases. The key point is that Section 194Q applies if a buyer's turnover in the immediately preceding financial year exceeded Rs. 10 crore, and their aggregate purchases from a single vendor during the current financial year exceed Rs. 50 lakh. If the buyer's preceding year turnover is Rs. 10 crore or less, Section 194Q is not applicable, regardless of the purchase amount from a single vendor.

If the turnover of the buyer in the immediately preceding year is up to Rs.10cr, then 194Q is not applicable, even if the purchase from a vendor >50lacs.

No TDS is not applicable
Above 10cr mandatory and financial year purchase value 50lakhs TDs applicable
Both conditions satisfy.
Turnover -during the year (excluding GST ) 50 Lakhs & turnover during the last F.Y (excluding GST) -10 Crore

Then only Sec.194Q-Exist.
Turnover 50laks means purchase from that party right.
50 lacs is the threshold limit for purchase/payment by the buyer to the seller (it's not the turnover limit).

50 Lakhs -Purchase

10 Crores -Sales

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